The Bitcoin Layer 2 track has fallen into decline.

After researching Bitcoin scaling technologies and related projects for a while, I gradually realized that Bitcoin Layer2 might be a false proposition. In fact, Bitcoin itself does not need Layer2 solutions; rather, the entire cryptocurrency industry needs to leverage the influence of Bitcoin.

Layer 2 is essentially just a business model and does not truly help the main chain achieve scalability. It creates some application scenarios for the main chain tokens, but most are merely imitating Layer 1, lacking substantial innovation.

The earliest validation of this view came from a certain Bitcoin startup team. They initially promoted Bitcoin Layer 2 actively in the Chinese-speaking region, but in 2024, they completely changed their strategic direction and launched a brand new "Super Bitcoin" plan.

Why did the team that was the earliest to focus on Bitcoin Layer 2 suddenly abandon this direction? I believe there are several main reasons:

Layer 2 has not truly helped Layer 1 scale.

The concept of Layer 2 originates from the simple payment verification (SPV) scheme mentioned in the Bitcoin white paper with the identifier (. Based on this, the Lightning Network has indeed helped Bitcoin achieve transaction scaling to a certain extent. However, while Layer 2 solutions on other public chains like Ethereum can share the security of the main chain, they cannot fundamentally solve the scaling problem.

This is because Bitcoin uses the UTXO model, which allows for concurrent processing of transactions and partial state updates. In contrast, public chains like Ethereum that use a unified account model rely on a global state tree for sequential updates, and this model itself limits scalability.

Therefore, aside from the Lightning Network, most Layer 2 solutions have not brought substantial changes to Layer 1. They are more like projects operating under the banner of scalability for their own business activities.

Layer2 is more like the business model of the project party

Almost all Layer 2 projects are centralized, lacking a consensus mechanism and the concept of nodes, and rely solely on an officially operated sequencer. This is essentially a private chain without a consensus mechanism.

Layer 2 tokens often lack practical use, as they cannot be used for staking or as Gas fees. Project teams primarily profit by collecting Gas fees, while attracting users through methods such as airdrops. This model is being increasingly emulated by more and more commercial entities, such as certain traditional financial institutions and cryptocurrency exchanges.

However, this business model has little to do with ordinary users. Layer 2 is more like a commercial operation of the project itself, where users are merely consumers. This is also one of the reasons why Layer 2 tokens find it difficult to form widespread consensus.

Bitcoin does not require Layer 2, but the industry needs Bitcoin

Among the innovative projects surrounding Bitcoin, the one with the largest market capitalization is a certain BTC cross-chain project. It realizes that the focus is not on adding features to Bitcoin, but on enabling the entire cryptocurrency industry to leverage Bitcoin as the largest "digital gold mine."

Bitcoin itself does not require any expansion plans. On the contrary, the entire industry and even human society needs Bitcoin. From this perspective, we should consider how the Bitcoin network can provide value for the broader human society and the future development of AI.

There is a view that the next value growth point for Bitcoin after it becomes a national reserve is to become the currency and decentralized control system for on-chain AI. This idea goes beyond simple Layer2 expansion and instead combines the Bitcoin network with the future development of humanity and the needs of AI.

The concept of "Super Bitcoin" proposed by a certain entrepreneurial team reflects this idea. They position the Bitcoin network as an ever-growing decentralized control system, believing that this is the only system that can meet the future governance and security needs of AI.

Overall, Bitcoin Layer 2 is no longer a promising entrepreneurial direction. As Bitcoin gradually becomes a national reserve asset, we need to rethink the value of the Bitcoin network itself, not just limit ourselves to the BTC token. The most promising direction for the future may be to explore how this continuously growing decentralized network can play a greater role in a future where humans coexist with AI. This might be the most valuable treasure that Satoshi Nakamoto left for humanity.